SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Schedule of Demand Charges

The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:

(Millions)	2021		2020		2019
Energy Services	$	120.5	$	121.8	$	120.4
Natural Gas Distribution	123.2		131.9		119.1
Total	$	243.7	$	253.7	$	239.5

Schedule of Property, Plant and Equipment

Property, plant and equipment was comprised of the following as of September 30:

(Thousands)	Estimated
Property Classifications	Useful Lives	2021		2020
Distribution facilities	38 to 74 years	$	2,558,651	$	2,309,039
Transmission facilities	35 to 56 years	643,942		332,947
Storage facilities	34 to 47 years	79,892		79,922
Solar property	15 to 35 years	675,376		665,233
Storage and transportation property	5 to 50 years	433,678		428,491
All other property	5 to 35 years	57,968		92,932
Construction work in progress		547,542		556,402		(1)
Total property, plant and equipment		4,997,049		4,464,966
Accumulated depreciation and amortization		(783,536)		(742,197)
Property, plant and equipment, net		$	4,213,513	$	3,722,769

(1)During fiscal 2020, construction work in progress was included within the various property classifications.

Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC

Capitalized and deferred interest include the following for the fiscal years ended September 30:

($ in thousands)	2021						2020						2019
AFUDC:	NJNG			Adelphia Gateway			NJNG			Adelphia Gateway			NJNG
Debt	$	5,648		$	2,101		$	5,134		$	1,394		$	3,710
Equity	16,605			3,698			14,599			2,454			6,492
Total	$	22,253		$	5,799		$	19,733		$	3,848		$	10,202
Weighted average interest rate	5.97		%	8.28		%	6.79		%	8.28		%	6.35		%

Schedule of Allowance for Doubtful Accounts

Allowance for doubtful accounts was comprised of the following as of September 30:

(Thousands)	2021		2020
Natural Gas Distribution	$	(17,040)	$	(5,628)
Energy Services	$	(5,825)	$	(104)
Clean Energy Ventures	$	(1,787)	$	(1,504)
NJR Home Services & Other	$	—	$	(6)
Total	$	(24,652)	$	(7,242)

Schedule of Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Statements of Cash Flows, as of September 30:

(Thousands)	2021		2020		2019
Balance Sheet
Cash and cash equivalents	$	4,749	$	117,012	$	2,676
Restricted cash in other noncurrent assets	$	1,294	$	2,411	$	1,387
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	6,043	$	119,423	$	4,063

Summary of Gas in Storage

The following table summarizes natural gas in storage, at average cost by company, as of September 30:

	2021				2020
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
Natural Gas Distribution		$	115,824	27.6		$	110,037	27.2
Energy Services		77,782		18.8		57,352		34.3
Storage and Transportation		—		—		115		0.02
Total		$	193,606	46.40		$	167,504	61.52

Schedule of Software Costs Included in the Consolidated Financial Statements

The following table presents the software costs included in the Consolidated Financial Statements, as of September 30:

(Thousands)	2021		2020
Balance Sheets
Utility plant, at cost	$	16,543	$	13,452
Construction work in progress	$	7,801	$	—
Nonutility plant and equipment, at cost	$	338	$	316
Construction work in progress	$	8	$	—
Accumulated depreciation and amortization, utility plant	$	(1,333)	$	(279)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(29)	$	(5)
Software costs	$	5,582	$	4,707
Statements of Operations
Operation and maintenance (1)	$	9,141	$	6,720
Depreciation and amortization	$	1,078	$	284

(1)During fiscal 2021 and 2020, $447,000 and 63,000, respectively, was amortized into O&M.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense as of September 30, is as follows:

(Thousands)
2022	$	2,681
2023	$	2,271
2024	$	77
2025	$	—
2026	$	—

Changes in Components of Accumulated Other Comprehensive Income, Net

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects, as of September 30:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance at September 30, 2019	$	—	$	(31,787)		$	(31,787)
Other comprehensive (loss) income, net of tax
Other comprehensive (loss), before reclassifications, net of tax of $3,203, $1,235 and $4,438, respectively	(10,505)		(4,882)			(15,387)
Amounts reclassified from accumulated other comprehensive (loss), net of tax of $(32), $(668) and $(700), respectively	108		2,751		(1)	2,859
Net current-period other comprehensive income, net of tax of $3,171, $567 and $3,738, respectively	(10,397)		(2,131)			(12,528)
Balance at September 30, 2020	$	(10,397)	$	(33,918)		$	(44,315)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $—, $(1,618), $(1,618), respectively	—		5,494			5,494
Amounts reclassified from accumulated other comprehensive loss, net of tax of $(350), $(957), $(1,307), respectively	1,021		3,272		(1)	4,293
Net current-period other comprehensive income, net of tax of $(350), $(2,575), $(2,925), respectively	1,021		8,766			9,787
Balance at September 30, 2021	$	(9,376)	$	(25,152)		$	(34,528)

(1)Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans.

Impact of Changes Resulting from Change in Accounting Principle

The impact of the change in accounting policy on the Consolidated Statements of Operations during the fiscal years ended September 30, 2020 and 2019 are as follows:

(Thousands)	As Previously		Effect of	As
September 30, 2020	Reported		Change	Adjusted
Depreciation and amortization	$	119,894	(12,526)	$	107,368
Total operating expenses	$	1,737,285	(12,526)	$	1,724,759
Operating income	$	216,383	12,526	$	228,909
Income before income taxes and equity in earnings of affiliates	$	172,664	12,526	$	185,190
Income tax (benefit) expense	$	(6,944)	43,438	$	36,494
Net income	$	193,919	(30,912)	$	163,007
Weighted average shares outstanding
Diluted	$	95,107	(4)	$	95,103
Earnings per common share
Basic	$	2.05	(0.33)	$	1.72
Diluted	$	2.04	(0.33)	$	1.71
September 30, 2019
Depreciation and amortization	$	91,730	(10,621)	$	81,109
Total operating expenses	$	2,438,110	(10,621)	$	2,427,489
Operating income	$	153,935	10,621	$	164,556
Income before income taxes and equity in earnings of affiliates	$	118,126	10,621	$	128,747
Income tax (benefit) expense	$	(37,751)	56,191	$	18,440
Net income	$	169,505	(45,570)	$	123,935
Weighted average shares outstanding
Diluted	$	89,616	(20)	$	89,596
Earnings per common share
Basic	$	1.90	(0.51)	$	1.39
Diluted	$	1.89	(0.51)	$	1.38

The cumulative effect of the change in accounting policy on the Consolidated Balance Sheets as of September 30, 2020 is as follows:

	As Previously		Effect of	As
(Thousands)	Reported		Change	Adjusted
Assets
Nonutility plant and equipment, at cost	$	1,430,723	(322,211)	$	1,108,512
Accumulated depreciation and amortization, nonutility plant and equipment	$	(202,507)	61,945	$	(140,562)
Property, plant and equipment, net	$	3,983,035	(260,266)	$	3,722,769
Other noncurrent assets	$	78,716	6,941	$	85,657
Total noncurrent assets	$	964,435	6,941	$	971,376
Total assets	$	5,569,802	(253,325)	$	5,316,477
Capitalization
Retained earnings	$	1,148,297	(200,796)	$	947,501
Common stock equity	$	1,844,692	(200,796)	$	1,643,896
Total capitalization	$	4,104,158	(200,796)	$	3,903,362
Liabilities
Deferred income taxes	$	190,610	(52,529)	$	138,081
Total noncurrent liabilities	$	931,922	(52,529)	$	879,393
Total capitalization and liabilities	$	5,569,802	(253,325)	$	5,316,477

The impact of the change in accounting policy on the Consolidated Statements of Cash Flows as of September 30, 2020 and 2019 are as follows:

(Thousands)	As Previously		Effect of	As
September 30, 2020	Reported		Change	Adjusted
Depreciation and amortization	$	119,894	(12,526)	$	107,368
Deferred income taxes	$	(9,092)	43,438	$	34,346
September 30, 2019
Depreciation and amortization	$	91,730	(10,621)	$	81,109
Deferred income taxes	$	(59,013)	56,191	$	(2,822)

The impact of the change in accounting policy on the Consolidated Statements of Common Stock Equity as of September 30, 2020 and 2019 are as follows:

	As Previously		Effect of	As
(Thousands)	Reported		Change	Adjusted
Retained Earnings
Balance at September 30, 2018	$	1,007,117	(124,314)	$	882,803
Net Income	$	169,505	(45,570)	$	123,935
Balance at September 30, 2019	$	1,075,960	(169,884)	$	906,076
Net Income	$	193,919	(30,912)	$	163,007
Balance at September 30, 2020	$	1,148,297	(200,796)	$	947,501
Total Common stock equity
Balance at September 30, 2018	$	1,418,978	(124,314)	$	1,294,664
Net Income	$	169,505	(45,570)	$	123,935
Balance at September 30, 2019	$	1,551,717	(169,884)	$	1,381,833
Net Income	$	193,919	(30,912)	$	163,007
Balance at September 30, 2020	$	1,844,692	(200,796)	$	1,643,896